Corporate Presentation September 2019 Link REIT To update figures & graphics About Link REIT Link is Our Portfolio Includes retail facilities, car parks and offices No.1 1st Hong Kong Largest REIT First REIT ~ 8M sq ft (1) in Asia by market listed in 86.8% 126 Retail space capitalisation Hong Kong of portfolio Properties ~ 56,000 by value Car park spaces Mainland China Only 1 100% (1) 5 ~ 5M sq ft Only internally- 100% free float held 13.2% Properties managed by institutions and Retail and of portfolio REIT in Asia private investors across Beijing, Shanghai, Guangzhou and Shenzhen office space by value Note: (1) As at 31 March 2019 Corporate Presentation | P.3 Quality Assets Across Hong Kong and Mainland China 131 Assets Geographical Split Mainland Mainland China Retail China Office 9.7% 3.5% HK Retail HK Office 66.0% 4.8% Beijing HK 01 | 2019 Car park China Shanghai Acquisition of Roosevelt Plaza, Beijing 16.0% Guangzhou Shenzhen Hong Kong Total portfolio value 03 | 2019 (1) Disposal of 12 properties in 03 | 2019 HK$218B Hong Kong Acquisition of +7.6%YoY CentralWalk, Shenzhen Note: (1) By valuation as at 31 March 2019 Corporate Presentation | P.4 To be updated on 31 Aug 2019 Top Global Retail-focused REITs Link is the largest REIT in Asia US$B 50.0 45.7 40.0 30.0 23.6 23.5 18.4 20.0 14.4 10.3 9.7 9.2 10.0 7.8 7.0 6.6 6.1 5.2 4.0 2.4 2.1 0.7 0.0 Note: Comparison of selected major REITs in the world based on market capitalisation Source: Bloomberg as of 30 August 2019 Corporate Presentation | P.5 ValueToday’s Creation Agenda Model to Achieve Our Vision What we invest in →Tenant sales growth →Open space initiative →Distribution per unit →Credit ratings →Staff satisfaction Business drivers →Staff attrition rate Management →Perception audit result Enhancement →Impact of Link Together Acquisition Initiatives Development →Customer engagement →Thought leadership publications Divestment Re-Development →Energy consumption →Waste management Corporate Presentation | P.6 Vision 2025 Our Medium-term Goals v Better AE Evolving Vision Portfolio Trends Improvement 2025 Today GBA Development Leader in Retail Properties Portfolio Clear Vision Regulatory Link Growth Effective Stewardship Environment REIT Robust Performance Strong Balance Sheet Economic Focus on Growth Culture of Environment Excellence Developing Climate Change & Strengths Sustainability Visionary Creativity Technology Understanding Stakeholders Corporate Presentation | P.8 Portfolio Growth To Maintain Growth Momentum High single-digit annual growth in the business Progressive KPI targets by 2025 2019 growth HK$218B AUM by 2025 CAGR 3.5% High single-digit CAGR 2005 +14.2% 9.7% as growth target HK$34B 4.8% 19.3% Hong Kong DPU growth ‘A’ ratings 86.8% 16.0% Sustain Maintain Mainland China Hong Kong 13.2% 100.0% 66.0% 80.7% HK Retail HK Car Park HK Office Mainland Mainland China Retail China Office Corporate Presentation | P.9 Multiple Growth Drivers Acquisition Enhancement • Core remains in • Continuous pipeline Hong Kong • Constantly reviewing • Focus on Tier-1 district potential cities & surrounding river delta areas in Development Mainland China • Focus on Hong Kong • Other geographies • Limited to 10% of portfolio will be opportunistic • Prefer quality retail and grade-A office Disposal • Non-core assets • Less growth potential • Lacking synergy Corporate Presentation | P.10 Culture of Excellence To Become an Employer of Choice To attract, retain and motivate the right talent KPI targets by 2025 Staff satisfaction High performing Improve rating to staff attrition rate >80% Low Corporate Presentation | P.11 AlignmentAlign Our Workforce of Goals toand Goals Strategies and Strategies Learning and Development Competency- Leadership based training conferences & for general staff management retreat for senior management Staff Volunteering ACCA Food Angel Community Day Corporate Presentation | P.12 Visionary Creativity Placemaking Through Innovation Doing Well by Doing Good KPI targets by 2025 Tenant sales Open space Customer growth initiative satisfaction Outperform 100% >70% market utilisation Energy savings Impact of Link Organic 30% compared Together Initiatives waste to to baseline(1) Create social landfill (2,3) by 2030 benefit ≥HK$2 Zero Notes: (1) On a like-for-like basis (2) For every HK$1 invested (3) Measured by Total Impact Assessment Corporate Presentation | P.13 CreatingCreating aa BetterBetter Place Place to BeTo Be Support waste management Enhance open space to establish vibrant communities Raw / packaged / surplus food collection from Link’s fresh market and other sources Through Link Together Initiatives Tin Shui Siu Sai Wan >1.2M HK$3.2 Promote solar energy usage Meals produced Socio-environmental 4 ~29 through redistributing benefits for every Pilot projects Potential projects or using as cooking HK$1 invested to complete in to rollout within ingredients 2019/20 3 years Corporate Presentation | P.14 Our Current Portfolio Hong Kong Platform Hong Kong Retail Hong Kong Car Park (3) 96.5% Occupancy HK$2,719 Car park income (2) (2) 7.1% 9.4% per space per month Rental growth 22.5% Rental growth Like-for-like Reversion rate Like-for-like HK$625K HK$68.0psf Average valuation Average unit rent per space Notes: (1) All figures for the year ended 31 March 2019, unless stated otherwise (2) Excluding properties divested and newly operational during the periods under analysis (3) As at 30 June 2019 Corporate Presentation | P.16 1Q 2019/20 Hong Kong Tenant Performance (1) Hong Kong Sales Growth Hong Kong Occupancy Cost (2) 20.0% 5.1% 18.0% 3.6% 3.1% 2.4% 16.0% 15.5% 0.8% 14.8% 14.4% 14.0% Food & Supermarkets & General retail(3) Overall 12.8% beverage foodstuff 12.0% -0.4% -3.4% 10.0% -5.4% 8.0% 6.0% FY15/16 FY16/17 FY17/18 FY18/19 1Q FY19/20 Food & beverage Supermarkets & foodstuff Apr 19 – Jun 19 (Link) Apr 19 – Jun 19 (HK) General retail (3) Overall Notes: (1) Percentage figures represent year-on-year change in tenants’ average monthly sales per square foot of the respective periods. (2) A ratio of base rent plus management fee to tenants’ gross sales. (3) Including clothing, department store, electrical and household products, personal care/medicine, optical, books and stationery, newspaper, valuable goods, services, leisure and entertainment, and retail others. Corporate Presentation | P.17 Continuous Asset Enhancement Strategy AE Guidance Decathlon Megastore at Sheung Tak >15% ~HK$600-800M Project ROI target Estimated CAPEX per year (1) AE Pipeline CAPEX >HK$1.2B extending to 2023 The sporting goods retailer’s largest store in CAPEX Hong Kong (~30,000 sq ft) HK$580M to Nam Cheong Place Market be completed by early 2020 18 4 6 Underway To commence Others under planning First retail-to-market conversion by Link Note: (1) As at 31 March 2019 Corporate Presentation | P.18 Mainland China Platform Mainland China Retail Mainland China Office (1) (2) (1) (2) 98.5% 30.2% 95.9% 23.8% Occupancy Reversion Occupancy Reversion Others Supermarkets 14.6% 16.7% & foodstuff Retailers & consumer products Professional services Leisure & F&B 3.4% entertainment 28.8% Industrial 41.7% 12.7% Trade Mix by goods & Trade Mix by Leased services Leased 17.2% (1) Area (1) Area Technology, General retail & Media, others Fashion Pharmacy Telecom 5.9% 15.1% 16.3% 27.6% Notes: (1) As at 30 June 2019 (2) For the year ended 31 March 2019 Corporate Presentation | P.19 Strong Capital Structure At a Glance Total Debt | HK$24.5B HKD Bank loans 3.12% 69.8% MTN (HKD 27.8% Effective interest Fixed rate debt/ and USD) HK$6.8B 62.0% (1) (1) rate total debt HK$15.2B RMB Bank loans 10.2% 4.8 years 10.7% HK$2.5B Average HKD fixed Gearing ratio rate debt maturity 1st green convertible bond in real estate sector globally 3 ‘A’ Credit Ratings Maturity: 5-year (due 2024) A/Stable A2/Stable A/Stable Coupon: 1.6% HK$4B S&P Moody’s Fitch Conversion price: HK$109.39 Note: (1) Refers to HKD debt portfolio Corporate Presentation | P.20 Hong Kong Economy Hong Kong +0.5% 2.8% GDP Growth Unemployment Median monthly household income (YoY) Overall Public rental housing 12% 10% 8% 6% 4% 2% 0% 2011 2012 2013 2014 2015 2016 2017 2018 1Q 2Q 2019 2019 Notes: (1) Figures as at 2Q 2019 (2) Source: Census & Statistics Department Corporate Presentation | P.21 Mainland China Retail Sales and Office Rental Index Mainland China Retail sales Office 1Q-2Q 2019 YoY change 2Q 2019 Grade A office rental in core CBD YoY change +5.4% +8.2% +7.7% -2.0% Beijing Guangzhou Shenzhen Shanghai Sources: Statistics Department / Bureau of respective city; Jones Lang LaSalle Corporate Presentation | P.22 Creating Value Integrating Sustainability into Our Business Benchmarks and Recognitions (1) Select Ratings & Rankings Select Ratings & Rankings (1) 50 Rank 6th Score In East Asia Score 61/100 Participation since 2013 Participation since 2012 (2) 3.3 ESG Rating BBB Score Participation since 2013 Participation since 2015 A+ 62 Score 66.1/100 ESG Rating Participation since 2015 Participation since 2017 Score Notes: (1) Latest performance available (2) ESG Rating ICB Supersector Relative Percentile Score 77 Corporate Presentation | P.24 Sustainability Commitments For Our Future Support United Nations Sustainable Development Goals Industries, Sustainable Partnerships Innovation and Cities and for the 9 Infrastructure 11 Communities 17 Goals • Obtain green building • Conduct total impact assessments • UNEP-FI and PRI coordination certifications and contributions • Reduce absolute energy • Issue green convertible bond consumption TCFD Participation Disclosure adheres